White House Report Touts Tax Breaks, U.S.-Taiwan Chip and AI Push

The Economic Report of the President, prepared annually by the White House Council of Economic Advisers, reviews the administration’s policies and their implications for growth. The One Big Beautiful Bill Act, enacted on July 4, 2025, makes full expensing permanent for equipment and research and development while allowing temporary expensing for new factories. The tax treatment matters for semiconductor and AI investment because it lowers upfront costs and supports the Trump administration’s drive to expand U.S. manufacturing and reduce critical supply-chain exposure.

Released on April 13, 2026, the report says a January 15 U.S.-Taiwan investment memorandum commits Taiwan-based companies to at least $250 billion of U.S. investment in semiconductors, energy and AI production. Taiwan’s government will provide up to another $250 billion in financing and credit support for a U.S. chip ecosystem. The two sides followed with an Agreement on Reciprocal Trade on February 12, linking tariff treatment and investment incentives to expanded U.S. capacity, improved market access and stronger supply-chain resilience.